Regulation of Cryptocurrencies in Bolivia
The Bolivian government banned the use of cryptocurrencies such as bitcoin back in 2014. The main reason for the ban is the assumption that digital assets will contribute to tax evasion and monetary instability in the country. According to the Central Bank of Bolivia, “it is illegal to use any currency that is not issued and is not controlled by the government or an authorized body.”
Unlike most countries that officially ban digital assets, Bolivia has refrained from repression or criminalization of the holding or trade of cryptocurrencies.
The Central Bank of Bolivia did not allow businesses and brokers to provide services related to cryptography, stating that crypto assets cannot be managed through the Bolivian financial system.
The regulator explained its decision by the need to protect the population from “risks and fraud.”
On January 10, 2022, the Central Bank of Bolivia re-banned the banking sector to make any transactions related to crypto assets. This measure “prohibits the use, marketing or transactions of crypto assets (digital or virtual coins) in the national payment system.”
In its January 10 press release, the Central Bank said the measure was necessary to protect the public from “risks and fraud.” The statement also warns that crypto trading has a “risk of creating economic losses" for holders of crypto assets.
The bank has attacked cryptography before. Back in December 2020, after the general election, it issued a resolution aimed at “banning the use of crypto assets in the domestic market.”
However, this warning was ignored. The media noted that numerous social media campaigns promoting services related to cryptography circulated in the country even after the ban on digital assets.
Despite the bans, citizens of the country also actively continue to use cryptocurrencies. Residents of Bolivia are increasingly using digital assets, and thanks to OWNR Wallet, you can now buy cryptocurrency with your credit/debit card.